NORA to use HUD funding in blight fight

The New Orleans Redevelopment Authority will receive an additional $165,000 “technical assistance” grant from the U.S. Department of Housing and Urban Development, on top of more than $31 million the city has received in two grants as part of HUD’s Neighborhood Stabilization Program.

Most of that money was granted in January to a consortium of nonprofit organizations led by the New Orleans Redevelopment Authority.

According to HUD, the consortium will use that money to demolish 1,370 blighted structures, build 795 new units on vacant or abandoned properties, rehabilitate 415 properties and “land-bank” another 90 properties.

Those targets differ from information provided by NORA, which says the second round of funds would go toward demolishing 250 blighted properties, purchasing or rehabbing 115 abandoned or foreclosed properties, redeveloping 500 properties and land-banking five properties.

NORA officials declined to discuss the discrepancies.

HUD first granted New Orleans $2.3 million in neighborhood stabilization funds in 2008. That money must be dedicated by September of this year, but it’s unclear at this time which public entity is administering it, or who will be in charge of the technical assistance grant.

The second grant, totaling $29.8 million, must be fully spent by February 2013.

Technical assistance grants, such as the one announced by Donovan, are available to help cities execute their plans, HUD spokeswoman Melanie Roussell said. Cities with high concentrations of blight and foreclosures, and those which lack local expertise, have received similar supplements. In addition to New Orleans, Las Vegas is among cities that have received technical assistance grants, Roussell said.

“They are awarded on need and expressing to the agency” that they are needed, she added.

HUD Secretary Shaun Donovan made the announcement Sunday afternoon after a four-hour meeting with Mayor-elect Mitch Landrieu’s transition team, several nonprofit groups, representatives of other federal agencies and city leaders.

City Councilwoman Stacy Head, who attended the meeting preceding Donovan’s announcement, said the council has no control over NORA but that the agency “has never given me a problem in telling me exactly what they do with everything.”

Donovan, standing next to Landrieu, told reporters that Landrieu wants to be held personally accountable for using the grants appropriately.

“We are absolutely committed to delivering on the promises,” Donovan said. “Too often I think the federal government in the past has let New Orleans down with promises but not following up and delivering on those.”•